The United States and Japan will step up their defence cooperation to deal with the threat from nuclear-armed North Korea as tensions in East Asia remain high, officials from the two allies said on Thursday.

Off to shrink for raising union questions

Officials who ask too many questions about the affairs of the NSW Electrical Trades Union are commonly intimidated and bullied, and one was sent to a psychiatrist, an inquiry into union corruption has been told.

The ETU is facing questions over a $500,000 loan to the NSW ALP in December 2010, which some of its own officials say was improper and did not follow proper procedures.

NSW ETU official Russell Wilson on Tuesday told the Royal Commission into Trade Union Governance and Corruption that people who raised concerns about the inner-workings of the union were often bullied or ostracised.

"I know what goes on in the place," Mr Wilson said.

"And I know what happens to people who raise issues in this union, and if it isn't liked."

"I know of a person who was actually sent to a psychiatrist over it ... It was proved he was completely sane."

The president of the NSW ETU, James MacFadyen, on Tuesday directly contradicted statements previously given to the commission by Mr Wilson and by the union's assistant secretary Paul Sinclair.

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Mr MacFadyen, who was also president of the Hardys Bay branch of the Labor Party at the time of the loan, told the commission he could not explain why it was not recorded into the minutes of a meeting on December 20, 2010, or a subsequent meeting two months later.

Mr Sinclair, who recorded the minutes of the December 20 meeting, has already given evidence that the loan was not discussed, and that he first learnt of the funds - transferred to the ALP on December 23, 2010 - in January 2011.

Under the union's rules, loans must be approved by the state council.

In a sworn statement, Mr MacFadyen on Tuesday said the loan was raised at the December 20 meeting by then secretary Bernie Riordan, including details such as the interest rate and a repayment schedule.

"The discussion concerning the loan is not recorded in the minutes of the executive and I have no understanding why that is so," he said in his statement.

He added that the minutes of the December 20 meeting were adopted at another meeting in January 2011, and a report of the loan made at a third meeting in February 2011.

"The minutes of the (Feb 2011) meeting however do not record any such report being given by Mr Riordan. Again, I have no understanding why this is so," Mr MacFadyen said.

The loan was paid to help the party with a "cash flow problem".

Asked by counsel assisting the commission, Jeremy Stoljar, whether he thought he had a conflict of interest, Mr MacFadyen said that at the time he did not believe he did.